38.2-2702 - Establishment of residual market facility.
§ 38.2-2702. Establishment of residual market facility.
A. A residual market facility shall be established and maintained by allinsurers licensed to write basic property insurance or other insurancecontaining a basic property insurance component. The plan of operation of theresidual market facility shall be subject to approval by the Commission.
B. The residual market facility shall be governed by a board of fifteendirectors. Four directors shall be appointed by the Commissioner, two of whomshall be property and casualty insurance agents and two of whom shall be fromthe general public.
C. The residual market facility shall have the power to:
1. Employ or retain persons necessary to perform the duties of the residualmarket facility;
2. Acquire, hold, and dispose of real and personal property, or any interestin real and personal property;
3. Borrow funds necessary to effect the purposes of this chapter in accordwith the plan of operation;
4. Negotiate and become a party to those contracts necessary to carry out thepurposes of this chapter;
5. Indemnify any director or member of its governing body, officer, employee,or agent in the manner permitted by and subject to the limitations containedin Article 9 (§ 13.1-875 et seq.) of Chapter 10 of Title 13.1; and provideany other or further indemnity to any such person that may be authorized bythe plan of operation except an indemnity against his gross negligence orwillful misconduct, and purchase and maintain insurance in the mannerpermitted by § 13.1-882; and
6. Perform any other acts necessary or proper to carry out the purposes ofthis chapter.
D. The residual market facility shall not be deemed to be an insurer withinthe provisions of § 38.2-100.
(1968, c. 559, § 38.1-748; 1973, c. 451, § 38.1-748.1; 1980, c. 156; 1982, c.664; 1986, c. 562.)